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Sainsbury's Finance anticipates fall in car purchases

Sainsbury's Finance has seen the anticipated spending in its Car Buying Index drop below £40 million for the first time ever.

The index has been running since 2003 and both the number of people who are planning on buying a car, as well as the amount they are planning on spending, has never been this low.

Steven Baillie, head of loans at the organisation, claimed that the demand for second-hand cars has increased their value, which uSwitch has said could have gone up by as much as £830 in a year.

He said: "Many people could be pleasantly surprised at how much they might get for their current vehicle when they come to upgrade it for a newer version."

The anticipated spend over the next six months according to the Sainsbury's Car Buying Index is £39 billion, which is £3.3 billion down from the figure released in the previous index published in spring.